NH Daily June 21 2018 (English)

(1)

Morning Brief

JCI moved lower yesterday. Investors responded to varied negative global

sentiments when IDX was off during long holidays.

Top Losers : Finance

(-3.54%), Property (-2.96%), Consumer (-2.38%)

Today’s Outlook: : Comprehends Rupiah Movement

Today we estimate that JCI is still moving modestly with the

support range of

5813

-

5831 and resistance range of 5904

-

5908

. Investors likely digest the rupiah

movement starting its trading today after the long holidays. On today’s initial

trading day, rupiah is depreciated higher than 14,000 per dollar. Global markets

showing no recovery after the jitters of the U.S. and China trade war is factor

suppressing Indonesia’s market. However, a number of domestic indicators sign

the improvement in consumption mainly in Eid Mubarak festive.

The U.S. markets moved mixed last night. The technology sector was capable of

closing higher due to corporate news.

Europe

European markets closed mixed yesterday even though the negative sentiment

from the U.S. and China trade war subdued gradually.

Asia

Asia markets closed higher yesterday after the steep decline occurred in the

previous days, yet the concerns about the trade war still lingered.

Company News

SMRA

: Sales Backlog to Hit IDR5 Trillion

JMSR

: Plan of Integrated JORR Will Cause No Impact

TRIO

: Posts Decline in Net Loss

LTLS

: Settles Its Bonds of IDR700 Billion

Domestic & Global News

Retail Industry Is Estimated to Post 20% Higher Revenue in 2018 Eid Mubarak

Chinese investment in the US drops 90% amid political pressure

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Stocks Recommendation

ASII

Last = 6950

Analysis

Two

-

wheel sales in May 2018 grew by 10.9%

to 589,304 units. From January to May 2018,

two

-

wheel sales grew by 13.4% to 2.63 million

units.

Range

6850

-

7250

Action

Trading Buy. Cut Loss If Below 6850

TLKM

Last = 3710

Analysis

TLKM increased its target of Indihome

-

product

subscribers to 5 million in 2018 from its initial

target of 4.7 million. Indihome subscribers hit

4 million in the early of June 2018.

Range

3660

-

3830

Action

Trading Buy. Cut Loss If Below 3660

LPPF

Last = 8825

Analysis

Aprindo predicted that 2018 retail sales likely

inclines by 15% higher than 2017 sales below

10%. The projection was made in light of the

hike in sales during Eid Mubarak holiday.

Range

8750

-

9400

Action

Trading buy. Cut Loss If Below 8750

Source: Bloomberg

Sector Rotation

Source: Bloomberg

Relative Rotation Graph

-

Last 10 Days

98 99 100 101 102

97 98 99 100 101 102 103 104

Agriculture _Mining

Lagging

Improving

Weakening

Infrastructure

Basic Ind. Consumer

Finance

Misc Ind.

Trade

Property

Lagging

(3)

(4)

Company News

Domestic & Global News

Retail Industry Is Estimated to Post 20% Higher Revenue in 2018 Eid Mubarak

The retail industry posted a better performance during the 2018 Eid Mubarak compared to the 2017 Eid Mubarak. Its

better performance was marked by the hike of 20% in its sales compared to the sales in the same period of 2017. The hike

was attributable to several factors such as the government’s policies of Idul Fitri bonus (THR) worth IDR35 trillion given to

retirees and the government’s plan to give the thirteenth salary to civil servants. These factors soared consumers’

purchasing higher. (Detik)

Chinese investment in the US drops 90% amid political pressure

Chinese acquisitions and investments in the U.S. fell 92 percent to just $1.8 billion in the first five months of this year,

consulting and research firm Rhodium Group said Tuesday. The decline follows a sharp drop in the second half of last year

as pressure from both Beijing and the Trump administration curbed a recent surge in cross

-

border investment. (CNBC)

SMRA

: Sales Backlog to Hit IDR5 Trillion

SMRA posted backlog worth more than IDR5 trillion part of

two

-

up

-

to

-

three

-

year

-

ahead revenues. It is committed to

completing every project on time by setting strategies.

Besides, it will continue to secure new projects. (Bisnis

Indonesia)

JMSR

: Plan of Integrated JORR Will Cause No Impact

JSMR stated that the integrated transaction system in

Jakarta Outer Ring Road (JORR) has no effect on its

business plans as short

-

distance toll users paying more

expensive toll road service are substitute for long

-distance toll users paying less expensive toll road service.

Besides, the less transactions spots are factors

contributing to traffic

-

least toll road. (Bisnis Indonesia)

TRIO

: Posts Decline in Net Loss

TRIO posted the decline of 61.7% to IDR188.42 billion in

2017 net loss attributed to parent entity. The decline was

underlined by its success in increasing revenue and

constraining business expenses. Its sales cost declined by

22.25% y

-

y to IDR117.38 billion. In 2018, it plans to close

some of its stores. (Bisnis Indonesia)

LTLS

: Settles Its Bonds of IDR700 Billion

LTLS settled the payment of I Phase of the 2013 Lautan

Luas I Shelf Registration. The bonds has the principal

value of IDR700 billion with 5

-

year tenor and the coupon

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